Pros of using bitcoins

Bitcoins come with some inherent advantages, owing to the unique nature of virtual currencies and therefore appears to offer some unique possibilitiesMay 29, 2017, 17:09 IST

By Hesham Rehman

The advantages of bitcoins versus other currencies have been a hot button topic, ever since the crypto-currency has been accepted as a mode of payment in many countries across the globe. Bitcoins come with some inherent advantages, owing to the unique nature of virtual currencies and therefore appears to offer some unique possibilities.

A third party cannot intervene

This is one of the major USPs bitcoins have to offer; no third party or other financial intermediaries can interrupt user transactions or block bitcoin accounts without the consent or the knowledge of the owner. It is an absolutely peer-to-peer system, where no one can seize bitcoins. However, this is an important reason why bitcoin should be brought under the purview of the Government and why it is necessary to regulate the currency and malpractices associated with the USP.

Bitcoins are still not under the taxation system

Owing to the one of the major USPs of bitcoins, where a third party cannot intervene, implementation of taxes on bitcoin is therefore currently not possible. Levying taxes on bitcoin could be possible if only somebody volunteers to send a percentage of the amount being sent as a tax.

Low costs for transaction

A bitcoin client staying connected keeping the platform running is something that keeps the sending and receiving of bitcoins going. Basically, users contribute to the network by using the currency, thereby getting involved in the process of authorizing transactions. This involvement of the users greatly contributes in reducing the transaction cost, making the cost almost negligible.It has no risks of being charged back

This could be another significant USP of the virtual asset; Bitcoins cannot be reversed once they are sent. This is because once the ownership address of bitcoins is changed to the new owner, it is impossible to revert. Once it is sent, it is only the new owner, who has the associated private key, can change the ownership of the coins. This system was created to minimize the risks involved when receiving bitcoins.Stealing bitcoins is not easy

While everything in the world has a vulnerable side to it, the level of vulnerability in bitcoin is minimal. As mentioned, the address of ownership can only be altered by the owner, this makes it absolutely impossible for anyone to steal the currency, unless they have physical access to a user’s computer and they send the bitcoins to their account. Unlike our legal currency and its transaction systems where, by simply offering few authentication details one can gain access to finances. Contrariwise, bitcoin systems need physical access, making it difficult to steal.

Requires no physical labour and only online/mobile payments

This is one of the luxuries bitcoins offer, unlike our conventional currencies, Bitcoin users need not get out of the comforts of their houses and travel to a bank or a store to collect the currency or to purchase products. Just like most of the online payment systems, bitcoin users can pay for their coins anywhere they have internet access. Furthermore, they also do not have to divulge any personal information, like in case of our regular banks to complete a transaction.

However, every user must educate himself or herself prior to investing into bitcoins, as the digital currency is relatively new and the users must weigh their benefits and risks.